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Emerging Gaming Services Will Damage Console Market
Gaming-as-a-Service Offerings on Horizon for Hardcore Gamers
Boston, MA - September 9, 2009 – Emerging gaming services currently in beta will have a significant, long-term impact on the gaming market, expanding the large, hardcore gamer base previously addressed exclusively by the key console vendors, according to the latest Strategy Analytics Gaming Strategies and Opportunities (GSO) report, “Gaming-as-a-Service (GaaS) – Could Hardcore Gamers Soon Have an Option?” This report identifies emerging players currently in beta tests with gaming services provisioned via broadband and cable systems which will impact console gaming long-term.
Barry Gilbert, vice president of gaming at Strategy Analytics, says, “Gaming services have the potential to be a major disruptive force in the entertainment industry and could have a significant expansionary effect on the size of the global hardcore gaming base.”
As the number of gaming service options increase for hardcore gamers—those who typically own a console and play a minimum of one hour weekly—the market is likely to witness a large growth spurt over the next five years. Console manufacturers are at risk to lose those gamers who would opt for service offerings in lieu of upgrading their own gaming infrastructure with new consoles, games, and accessories, provided that these services offer an equivalent gaming experience.”
Of the nearly 115 million gaming consoles expected to be installed worldwide by year end, along with an additional 125 million portable consoles, the market is poised for a next generation service that lowers the cost of entry and that provides additional benefits which will ultimately extend to the mobile market. Companies, such as OnLive, Otoy, Gaikai, and Playcast Media, among others, are developing capabilities to provision console-class games via broadband and cable networks, according to this Strategy Analytics report. At the same time, wireless networks and handset OEMs are improving their capabilities with lower latency data transmission and handset devices that support gaming functions. Long-term, gamers could play console-class games on smart phones and other handheld devices without needing the console.
Strategy Analytics is currently launching a multi-client study that measures interest in adopting Gaming-as-a-Service (GaaS) offerings and the current use and satisfaction with mobile gaming.
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